HMRC Lose VAT Battle as Farmers Dodge a Bullet

HMRC Lose VAT Battle as Farmers Dodge a Bullet

HMRC, VAT

A Scottish farm business has won its battle against HMRC, enabling it to reclaim VAT payments worth more than £1m. The UK Supreme Court ruled in favour of Frank A Smart & Son Ltd after HMRC initially refused to let the company reclaim VAT incurred on the purchase...
Agricultural Flat Rate Scheme – Do You Qualify?

Agricultural Flat Rate Scheme – Do You Qualify?

Advice, HMRC, VAT

Farmers may be eligible to apply for the Agricultural Flat Rate Scheme, as an alternative to voluntarily registering for VAT. Joining the scheme means that you can add a 4% Flat Rate Addition (FRA) to Vat-registered customers when supplying any of the qualifying goods...
VAT Implications of Barn Conversions

VAT Implications of Barn Conversions

VAT

In recent years many farmers have sought planning permission on redundant farm buildings to convert them into dwellings. If a farmer is looking to develop the barn himself, rather than sell it on once permission has been granted, one of the key considerations is the...
Making VAT Digital Is Coming

Making VAT Digital Is Coming

VAT

Farms businesses are left with just over 14 months to get themselves ready for new VAT rules, requiring them to keep digital records. Last year the Government decided to delay plans for introducing Making Tax Digital (MTD) for income tax until at least April 2020, to...
HMRC Lose VAT on BPS Appeal

HMRC Lose VAT on BPS Appeal

Basic Payment Scheme, VAT

Following an unsuccessful appeal by HMRC, farmers should be able to continue to reclaim VAT against purchases of Basic Payment Scheme (BPS) entitlements. HMRC argued against farmer, Frank Smart, that the VAT incurred on the purchase of his BPS entitlements had a...